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116. Pre Market Analysis - May 31 , 2021

  1. Finally Nifty closed at ATH with a help of his parents that is Reliance and HDFC Bank .

  2. Where Nifty closed with a gain of 97.80 points , Sensex climbed 307.66 points and Bank Nifty just closed with 46.30 points gain.

  3. Reliance alone contributed 88.72 points in Nifty out of 97.80 points however HDFC Bank contributed 21 points .

  4. Few Banking stocks , Pharma stocks , selected IT stocks are dragging the market.

  5. First time in 2021 India VIX closed at 17.40 which indicates a strong bulls influencing the market.

  6. FIIs and DIIs were both on buying side with big numbers , where FIIs bought 913.59 crores and DIIs bought 1275.22 crores.

  7. The big question coming from everyone mind is that , will Nifty going to continue this bull rally by breaking the ATH? Yes it may break but there are some parameters which we need to look before going to predict the market. Read below parameters to before you predict the market

(a). We knew Banking stocks contribution is more than 33% in Nifty and as of now Bank Nifty still need 2500 points to reach ATH and mainly weightage stocks are under performing so keep a eye on HDFC Bank , ICICI Bank , Kotak Bank , Axis Bank , if they perform well in coming days then we can expect rally in markets.

(b). Reliance alone supported Nifty on Friday and if it is going to continue the same aggressive moment then Nifty will be boosted every day but if Reliance is perform good and banking stocks under perform then Nifty will go with buy on dips market.

(c). We knew Every month first week Auto sales and cements sales will be declare so declaration of less sales in Auto may spoil the party for Nifty.

(d). Another important news we need to track is that U.S jobs report ,they will declare first Friday on every month so keep a eye on it als0.

(e) . Many people are excited to invest their money in markets now after seeing Nifty at ATH and that is not a right time to invest because most of the times profit booking may happen at ATHs so expect some correction or consolidation for few days then invest money wisely.

9. Read all above 5 points and predict the Nifty on coming days.

10. Coming to global markets :- Last night U,S and U.K markets closed at higher and Currently Dow Jones , Nasdaq and U.K futures are trading with flat.

11. Today U.S markets holiday.

12. Most of the Asian markets are negative.

13. SGX Nifty is down by 59 points as of now.

14. Coming to India :- Today our markets may open with flat based on SGX Nifty and global markets clues.

15. There is very less clues today from global markets due to holiday in U.S markets so we may go with domestic news today so expect less moves in our market today .

16. Bank Nifty may take support at 35,000 and once it breaks then it may further.

17. Consider the India VIX closed on Friday and Reliance performance so today we may see Divergence in between Nifty and Bank Nifty so expect buy on dips or consolidation in Nifty and Bank Nifty may continue to under perform if weightage stocks didn't support and also any profit booking may drag Nifty down so based on all these clues we may see today both side moves with less range.

18. The one who is looking for support and resistances based on OI data and chart analysis :- Nifty had a resistance at psychological level at 15,500 and support at 15,333.

19. Bank Nifty had a support at 35,000 and resistance at 35,606.


All The Best , Trade With Discipline.

BONFIRETRADER

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